Bootstrapping and the serial entrepreneur

Filed in archive Bootstrapper Tips on November 6, 2007

Why could bootstrapping be an easier approach for the person seeking to start multiple companies or become a serial entrepreneur?

Here are some thoughts:
• Bootstrapping helps you start your company free from debt
• As a result companies with positive cash flow will have a shorter time to profitability
• No encumbrances of debt will make it easier to start a second company (more cash flow, less debt service)
• Additional businesses, like the first, will need less investment using the bootstrapping approach
• Lack of needed upfront investment means less chance of financial over extension with the only added cost being time
• Positive cash flow from an initial bootstrapped startup provides debt free financing for additional businesses.

Have some other points to add? Leave me a comment.